Labour dynamics in South Africa's agricultural sector

Statistics South Africa's Labour Force Survey for the second quarter of 2025 released in August, estimates that around 16,8 million people were employed at that time. This represents an increase of approximately 0,9% (around 154 000 people) compared to last year. The unemployment rate is estimated at 33,2%, down 0,3% from a year earlier, but 0,3% higher than in the first quarter of 2025. Including discouraged job seekers, the broad unemployment rate stands at 42,9%.

- By Hano Higgs, Timon Dedekind, Iniel Huggett and Dr WA Lombard, Department of Agricultural Economics, University of the Free State

Sector-specific figures

Of the different economic sectors, the formal sector (excluding agriculture) remains the largest employer, with roughly 11,47 million people. This is followed by the informal sector (3,3 million people), private households (1,1 million people), and agriculture, which employs just over 906 000 people. Employment in agriculture has increased by around 10 000 compared to last year. However, seasonal fluctuations are evident: The sector lost approximately 26 000 jobs since the first quarter of 2025.

There is ongoing debate over the impact of government-set minimum wages on employment, particularly in agriculture, which relies heavily on unskilled labour. Examining historical trends (Figure 1), there is no clear relationship between minimum wage increases and agricultural employment. For instance, while a 2014 wage increase appeared to coincide with a drop in agricultural employment, this was followed by a sharp rise in the number of workers employed in 2015.

Trends across countries

Figure 2 illustrates the share of the workforce employed in the agricultural sector across various countries and regions. In South Africa, agriculture accounts for approximately 19% of total employment. A slight increase in this share is observed in 2020; however, this does not necessarily reflect new job creation in the sector (Figure 1 shows a small decline in agricultural employment during this period). Rather, it indicates that other sectors experienced significant job losses, thereby increasing agriculture's relative contribution.